Government enforces mandatory blending of biogas

The government has announced a mandatory blending of Compressed Biogas (CBG) with natural gas to reduce dependence on imports. Initially, 1% of biogas will be blended in gas used for automobiles and household kitchens starting from April 2025, with the aim to increase it to around 5% by 2028. Additionally, the government plans to introduce 1% sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2% in 2028, initially applying to international flights.

The blending of CBG is expected to stimulate demand in the city gas distribution sector, reduce reliance on liquefied natural gas (LNG), save forex, promote a circular economy, and contribute to achieving the target of net zero emissions by 2070. The government anticipates an investment of approximately Rs 37,500 crores and the establishment of 750 CBG projects by 2028-29. The blending obligation will be voluntary until the financial year 2024-2025, after which it becomes mandatory from the financial year 2025-26 onwards, starting at 1% and increasing gradually to 5%.

A Central Repository Body (CRB) will monitor and implement the blending mandate based on operational guidelines. The Sustainable Aviation Fuel (SAF) targets, initially for international flights, include a 1% indicative blending target in 2027 and a 2% target in 2028. These initiatives align with the goal of achieving net zero emissions by 2070.